Major United States benchmark averages pulled back on Friday as investors locked in profits ahead of the long weekend, following a fresh S&P 500 record earlier in the week and upbeat earnings from Nvidia.
Despite the decline, the S&P 500 secured its fourth consecutive monthly advance.
During Friday's session, the Dow Jones Industrial Average lost 92.0 points, or 0.2%, to finish at 45,544.88. The S&P 500 slipped 41.6 points, or 0.6%, to 6,460.3, while the Nasdaq Composite dropped 249.6 points, or 1.2%, to 21,455.6.
Tech stocks led losses, with Dell plunging nearly 8.9% post-earnings, amid concerns about rising manufacturing costs for artificial intelligence-optimised servers and mounting competition.
Nvidia extended its losing streak to a third day, falling 3.4%, as its latest results failed to fully satisfy lofty market expectations, even as the company confirmed continued strong investment in AI systems.
On the economic front, inflation data remained a key driver. The core personal consumption expenditures (PCE) index, the Federal Reserve’s preferred gauge that strips out food and energy costs, rose 2.9% in July.
The figure matched forecasts but accelerated from 2.8% in the previous month, reaching its highest level since February.
Consumer sentiment readings came in slightly weaker, with the final August reading of the University of Michigan survey coming in at 58.2, below the preliminary 58.6 estimate.
Despite Friday’s declines, major indices posted solid monthly gains. The Dow climbed 3.2% in August, the S&P 500 added nearly 1.9%, and the Nasdaq advanced 1.6%.
On the bond market, the benchmark 10-year Treasury yield rose 0.6% to 4.232%, while the 2-year yield eased 0.3% to 3.621%.
